The Andhra Pradesh government has issued guidelines for the grant of bar and liquor shop licences at airports in the State, excluding Tirupati Airport, based on the recommendations of a Group of Ministers (GoM) that examined licensing frameworks followed in Maharashtra, Telangana, Karnataka and Delhi.
According to G.O. Ms. No. 386, dated June 27, 2026, issued by Principal Secretary (Revenue-Excise) Mukesh Kumar Meena, the GoM reviewed the licence fee structure, business hours, serving points and other operational aspects in airports across these States. The assessment found that airport-specific licensing frameworks generally recognise the unique operational requirements of airports by permitting round-the-clock business operations, treating terminal buildings and associated commercial areas as part of the licensed premises, and allowing flexibility in establishing serving points or counters within the licensed area.
The order noted that under the existing regulatory framework, star hotels are permitted to operate multiple serving points such as roof gardens, lawns and banquet halls under a single bar licence. Considering the growing passenger traffic at airports in Andhra Pradesh, the GoM recommended a calibrated Retail Excise Tax (RET) structure linked to annual passenger footfall.
Based on the GoM’s recommendations and proposals submitted by the Director of Excise and Prohibition, the government has framed guidelines for the grant of bar and shop licences at airports. The guidelines will be published in an Extraordinary issue of the Andhra Pradesh Gazette on Monday.
Under the guidelines, bars and liquor shops will be permitted at all airports in the State except Tirupati Airport, subject to the provisions of the A.P. Excise Act, 1968, the A.P. (Regulation of Trade in Indian Made Foreign Liquor and Foreign Liquor) Act, 1993, and the rules framed thereunder. For the purpose of licensing, airports have been defined as comprising the terminal buildings and airport plazas.
Applicants seeking bar licences must pay an application fee of ₹5 lakh, while those applying for shop licences must pay ₹2 lakh. The licence period will be co-terminus with the contract agreement between the airport operator and the applicant recommended by the airport operator.
The annual RET for airport bars has been fixed at ₹25 lakh for airports handling 20 lakh or more passengers a year and ₹15 lakh for airports with annual passenger traffic below 20 lakh. Airport liquor shops will attract an annual RET of ₹1 crore.
Published – June 28, 2026 08:14 pm IST